The number of workers applying for unemployment benefits in the U.S. rose last week from a nine-month low.
Initial claims for the week ended Oct. 21 rose to a seasonally adjusted 210,000 from a revised 200,00 in the previous week, which was the lowest reading since January, the Labor Department said in a statement Thursday.
The four-week moving average increased to 207,500 from 206,250, according to the report.
The almost seven-week strike of the United Auto Workers doesn’t seem have had an impact on data. States that concentrate most workers in the walkout were not among the ones with highest increases in jobless claims.
The UAW announced late Wednesday that it reached a tentative agreement with Ford to end the strike at the automaker’s units. Before the agreement, UAW estimated that 45,000 workers of Ford, General Motors and Stellantis joined the walkout.
Strong Job Market
Despite the increase in jobless claims, the data still show a strong U.S. labor market, which helps boost consumer confidence, with direct impact on economic growth.
A separate report from the Commerce Department released Thursday showed that the U.S. economy expanded 4.9% in the third quarter, the fastest pace in almost two years and more than economists’ expectations. Growth has been sustained by strong consumer spending.
The Federal Reserve will be looking into growth, inflation and labor data when it meets next week to decide on interest rates.
“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Fed Chair Jerome Powell said in a speech Oct. 19 in New York.
The U.S. benchmark rate is currently in the range of 5.25% to 5.50%, the highest level in 22 years.
